Justice Carpio: Aquino ‘castrated’ Congress’ power of the purse

MANILA, Philippines – Despite the good intentions to push for economic growth, President Benigno Aquino III under the unconstitutional Disbursement Acceleration Program has “castrated” Congress’ exclusive power of the purse, making it “inutile and a surplasage,” Supreme Court’s Senior Associate Justice Antonio Carpio said.

Supreme Court’s Senior Associate Justice Antonio Carpio

In his 27-page separate opinion, Carpio said surprisingly many senators and congressmen supported DAP and National Budget Circular 541, the so-called ‘bible’ for DAP “when these Executive Acts actually castrate the power of the purse of Congress.”

“This Court cannot allow a castration of a vital part of the checks-and-balances enshrined in the Constitution, even if the branch adversely affected suicidally consents to it. The solemn duty of this Court is to uphold the Constitution and to strike down the DAP and NBC 541,” Carpio said.

Carpio said Aquino in the middle of the fiscal year of the General Appropriations Act (GAA) under the DAP and NBC 541 can declare all maintenance and other operating expenses (MOOE) for future months (except for mandatory expenditures and expenditures for business-type activities), as well as all unobligated outlays, as savings and realign such savings to what he deems are priority projects, whether or not such projects have existing appropriations in the GAA.

At the same time, Carpio explained that the President is sworn to uphold and faithfully implement the GAA since it is a law and that once the President approves the GAA or allows it to lapse into law, he can no longer veto or cancel any item in the GAA or impound the disbursement of funds authorized to be spent in the GAA.

He added that the President under Section 38, Chapter V, Book VI of the Administrative Code of 1987 is allowed to suspend or otherwise stop further expenditure of appropriated funds but this must be for legitimate purpose, such as when there are anomalies in the implementation of a project of in the disbursement of funds.

“Section 38 cannot be read to authorize the President to permanently stop so as to cancel the implementation of a project in the GAA because the President has no power to amend the law, and the GAA is a law. Section 38 cannot also be read to authorize the President to impound the disbursement of funds for projects approved in the GAA because the President has no power to impound funds approved by Congress,” Carpio said.

Carpio also stressed that the DAP funds cannot constitute as savings adding that as long as the “appropriated funds are still obligated, the funds cannot constitute savings because savings as defined in the GAA, must come from appropriations that are “free from any obligation or encumbrance.”

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